Get all your news in one place.
100’s of premium titles.
One app.
Start reading
ABC News
ABC News
Business
By Tobias Jurss-Lewis and Ciara Jones

Here are some simple tips to slash your electricity bill this winter as power prices surge

Across south-east Queensland, power bills are expected to rise by $165 a year or 11.3 per cent. (Unsplash: Diz Play)

It's the third day of winter and temperatures are dropping to single digits, which means Queenslanders are firing up the heaters and bracing for an eye-watering power bill.

As households deal with surging costs of living, electricity prices are rising after the energy industry watchdog increased the benchmark power price or default market offers (DMO).

The DMO serves as a guide for power retailers and attempts to protect consumers from unjustifiable price rises.

The changes come into effect on July 1.

How much will my bills go up?

Across south-east Queensland, power bills are expected to rise by $165 a year or 11.3 per cent.

In regional Queensland, a report by the Queensland Competition Authority (QCA) found power bills will increase by 9.2 per cent or around $119 each year.

Mariam Gabaji, an energy expert at Finder, said actual price increases would differ between energy providers.

"Households which are already stretched to the limit are now confronted with another utility price hike," Ms Gabaji said.

"It could go up by as much as 131 per cent… it really depends on who your energy retailer is." 

So here are some cost-cutting tips to keep your power bill under control this winter.

1. Shop around for a better deal

Ms Gabaji said in extreme cases, people could be paying "double or triple" the amount they had previously been paying for energy this winter.

"The first step is to call your provider and find out if you can get a cheaper plan and if so, find out if they will end up increasing prices before the first of July reset.

"The other step is to shop around for other energy plans because you can lock in a fix-rate plan, that means that your user cost won't go up for 12 months so you'll be safe from any price hikes that might be coming up over the next couple of months.

"Research found that you can save $415 by switching energy providers… if you haven't moved providers in over a year."

This federal government site can help you assess your energy options.

Some people could be paying "double or triple" the amount they had previously been paying for energy this winter. (ABC News: Chris Gillette)

2. 'Hack your home'

Ms Gabaji said cheap and simple steps around the house like "switching to an electric blanket" rather than using a heater could save money.

"Use weatherproof tape on your windows… [or] get a floor rug or a door snake just to keep the cold air out," she said.

She also suggested getting your windows properly insulated as a long-term investment.

3. Get a cost and energy-efficient heater and run it a little less

The cheapest and most efficient way of warming a space depends on variables like the room's size and configuration, but consumer groups have taken a look at various devices.

A study by Finder earlier this year found the running cost of a reverse cycle air conditioner for four hours a day over the 90 days of winter would cost $65.

Of the eight options tested, the panel heater was the next cheapest device at $157.

"Cutting down on your heater usage and using it for three hours a day instead of four can save you," Ms Gabaji added.

"Make sure you don't leave your doors open so that your one room is getting heated, otherwise you'll lose energy."

A gas heater is more energy-efficient based on cost-per-energy unit and heat output, according to consumer research service Canstar Blue.

Gas converts a higher percentage of energy to heat than electricity, meaning you can heat a room faster than if you were using an electric heater.

4. Turn off your appliances

Leaving computers, televisions and other electronic devices in "standby mode" will increase your bill.

Instead, ensure you turn off devices at the power point and get into a habit of switching the lights off whenever you leave the room.

Leaving computers and other electronic devices in "standby mode" will increase your bill. (Unsplash: Carl Heyerdahl)

5. Look out for rebates

The Queensland government is currently offering a $175 rebate, which will automatically apply to the next round of household power bills.

Why are prices rising?

The Australian Energy Regulator (AER) attributes the price rise to a 49.5 per cent hike in the cost of wholesale energy in Queensland, stemming from increasing global coal and gas prices and extreme weather in Queensland and New South Wales affecting coal supplies.

It has described the decision as "difficult" and said the cost pressures facing electricity providers were real.

Editor’s note (3/6): The section on energy-efficient heaters was updated to clarify the data on panel heating prices and include gas heating options

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.